Almost 90% of successful MLM companies present on the Russian market operate in the field of selling cosmetics and dietary supplements. We also found our customers in such categories as goods for motorists, dishes and textiles. Many of the network brands are not only known to consumers, but are also in high demand, which means it is much easier to get additional income by becoming a representative of such a network. In order to reduce risks and enter into an agreement with a reliable organization, you can consider a list of network marketing companies in Russia that operate completely legally and are included in the ratings of the best in terms of product quality and terms of cooperation.

Foreign MLM companies in the Russian Federation

It is worth recognizing that the best network marketing companies in Russia came to the domestic market from the USA and Europe. Many of them have been working for decades, and even today you can occupy a worthy niche in the existing chain of such a network.

The first network company to appear on the domestic market in 1995. In the CIS countries, its name has become a common noun to designate all nutritional supplements for weight loss and work in the network business in general. Herbalife was founded in 1980 and today is one of the world's three largest networks. On average, annual product sales are about $4.5 billion. Income from participation in the network is generated through discounts on the purchase of products, which at the starting stage is 25%.

Official website in Russia -.

Avon

Avon

The oldest network marketing company in the world, founded in 1886 in California. It has been operating in Russia since 1991, offering cosmetics, perfumes, accessories and souvenirs. One of the three largest network companies in the world. Avon products are popular in 75 countries. Network participants are offered a linear marketing scheme, including income from individual mark-ups on products and remuneration from group turnover.

Official website in Russia - avon.ru.

Amway

Amway

The largest and most successful MLM company. Began its work in 1959 in the USA. A distinctive feature of Amway is its wide range of products, which includes various consumer goods from cosmetics and household chemicals, to bags, dishes and stationery. Amway's annual turnover is approximately $12 billion. Network participants are positioned as Independent Amway Entrepreneurs who receive the right to purchase products at a discount. In addition to earning money through mark-ups on goods, the distributor (registered as an entrepreneur with the tax authorities) can receive bonus payments for personal turnover and the turnover of the group he has attracted.

Official website in Russia - amway.ru.

The company was founded in 1963 in Texas. A special feature of this network is not only the release of high-quality and affordable cosmetics to the market, but also regular lessons for clients on skin care and makeup techniques. Thanks to this, distributors of Mary Kay products are called consultants. The annual turnover of the network is about 3 billion dollars, and the total number of consultants is more than 2.5 million people. Currently, about 500,000 network participants are registered in Russia, with almost 80% being updated throughout the year. The partnership is based on a linear marketing system. Income is generated from individual markups when selling products, as well as commissions for achieving a certain level of turnover.

Official website for citizens of the Russian Federation - marykay.ru.

The fairly well-known company Oriflame, founded in 1967, was one of the first to enter the domestic market, which today positions itself as the main one. Since 2006, in addition to service centers, production of some types of brand products has been established in Russia. Currently, there are more than 3.5 million distributors registered in this marketing network, working under a multi-level marketing scheme. The company's main products are cosmetics, perfumes and the Wellness line of nutritional supplements. In recent years, the company has been actively developing in the Internet space.

Official web representation in Russia -.

Many companies involved in network marketing make attempts to enter the market with a product that is atypical for this business and is in constant demand among consumers. Perhaps the Austrian company Zepter, which began operations in 1986, did this best. The main product line is high-quality kitchenware, household appliances, medical equipment and cosmetics. Products are manufactured using our own innovative developments at six large factories located in different countries around the world. As of 2018, more than 120 representative offices of the network were registered in Russia, and more than 6 million people became the company’s clients. Zepter offers its distributors a linear marketing system.

Russian web representation -.

A young French MLM company with a linear marketing system, which entered the Russian market in 2013. The main product line is natural cosmetics at an affordable price, while distributors purchase products at a 26% discount. The income of a company representative, in addition to the markup, is also formed from the turnover of the attracted group, which ranges from 3% to 21%. Distributors can also open a bureau (division), receiving additional bonuses from its turnover. At the current stage, Biosea is in a phase of active growth, which makes it attractive for building an independent career.

Official website in Russia - biosea.fr/ru.

In fact, the Farmasi company was founded in 1950, but it entered the Russian market only in 2011. The main direction is the sale of decorative cosmetics, luxury perfumes and various care products. Like many network marketing cosmetics companies, the Turkish brand Farmasi offers to earn money through markups (discounts for partners), which directly depends on sales volume. Bonuses are also paid based on the turnover of the attracted group, with the percentage of deductions depending on the level of the latter. Currently, the development of this network is experiencing intensive growth, which is due to the high quality of products and incomparably affordable prices.

Official website of the company -.

An American company that started operating in 1978. A special feature of this network is its products made exclusively from Aloe Vera. At the same time, the catalog currently contains more than 150 items of complexes, cosmetics and dietary supplements. The current network of distributors acting as independent entrepreneurs of the Forever Living Products company exceeds 10 million people, but this company is still very little represented on the domestic market.

Company website for the Russian market - foreverliving.com.

Another American company working in the production of cosmetics and dietary supplements. When developing Jeunesse Global products, the main focus is on anti-aging and comprehensive rejuvenation of the body. This is a relatively young network, registered in 2009. It appeared on the domestic market only in 2014, offering distributors six options for generating income, working exclusively online. At the initial stage, the partner receives a markup on products due to a 35% discount, a reward for purchasing a starter package, as well as commissions from sales of the attracted team.

Russian version of the official website - jeunesseglobal-russia.ru.

Kyani

Kyani

The company has been operating since 2005, but entered the Russian market only in 2013. The assortment includes natural juices and vitamin complexes, including noni juice. Much of the product is made from products grown in Alaska. The company offers network partners 12 types of income, including commissions for turnover without limiting the group level. At the same time, the achieved rank of the distributor does not decrease with a decrease in turnover. Financial indicators indicate that the annual income from the sale of Kyani products is consistently about $1 billion, which indicates the popularity of the products among consumers.

Russian version of the company's official website - kyani.com.

One of the first Russian network companies, founded under a franchise purchased in the USA in 1998. The product range includes more than 150 items, most of which are dietary supplements and cosmetics made from corals. Initially, the company's marketing plan had a linear structure, which over time was supplemented by many types of bonuses and rewards. When registering as a distributor, a 20% discount on products is automatically provided.

Russian network marketing companies

Undoubtedly, the leader in terms of popularity of the MLM business model is the United States, but our country has also made significant progress in this direction over the past decades, presenting many high-quality products and promising cases for distributors to the world market. At the same time, the TOP network marketing companies in Russia are somewhat more diverse and include networks that work with a wide range of consumer goods, and not just dietary supplements and cosmetics.

The network began operating in 2002, setting itself the goal of becoming a leader in Russian perfumery. Ciel Parfum's strictly linear marketing plan invites distributors to profit from product markups. Moreover, in order to receive a 40% distributor discount, you must purchase one of the starter packages, costing from 25 to 75 dollars. For attracting a group and increasing turnover, the discount increases. The company's products themselves are of good quality and meet international standards, which ensures consumer demand.

This Russian brand, using linear marketing, undoubtedly tops the ranking of network marketing companies in Russia. The network began operating in 1997 and since 2003 has entered the international market, delivering goods to 42 countries. Over the past years, the company has not only formed a network of 2 million distributors, but also absorbed several competing MLM companies. The main products are cosmetics, high-quality household chemicals, clothing and accessories. According to RBC, this is one of the fastest growing companies in Russia.

Network website -.

The company's main products are medical equipment and household appliances for therapy and healing. The network began its activities in 2005, and since 2009 it has received certification and permits from the Ministry of Health of the Russian Federation. The company's marketing strategy provides for a linear cooperation scheme with a distribution discount of up to 60% of the cost of goods. Bonus rewards are awarded only to first-level partners, but there are no restrictions on turnover.

Recently, a new company website has been launched - biomedis.life.

A Russian network that also works with medical equipment and, above all, devices for conducting physiotherapy at home. It was founded in 1998 and today has more than 120 large warehouses located in the CIS countries. The range includes 15 types of devices, in addition to which dietary supplements and medicinal cosmetics have been included in recent years. The marketing cooperation scheme includes several levels, which include discounts on products, commissions from personal sales and turnover of the attracted group, as well as rewards for achieving a certain rank. The company conducts very effective training sessions for new partners. Today this network is attracting more and more attention from both distributors and ordinary consumers.

We can say that this is the first domestic Internet project that has successfully combined the MLM concept and the auto industry. The network began operating in 2014 in Barnaul and today has more than 120 representative offices in various regions of Russia. The main essence of the project is to provide partner discounts for a wide range of services and goods. The network’s marketing plan is based on a matrix, which you can get into by becoming a shareholder of the project (paying an entrance fee). To stay in the matrix you need to invite 2 partners, but to receive bonuses you will need at least 7.

Official website of the project - auto-club.biz.

A domestic brand offering a wide range of health and beauty products (cosmetics, dietary supplements, perfumes, various personal care products). The network was founded in 1996 and today it is not only one of the leaders in the Russian market, but also operates in 16 largest European countries. The number of distributors in the network exceeds 150,000 people. The company's success is ensured not only by high-quality products, but also by a very good marketing plan, which does not require the purchase of a starter package or any investment. Also, depending on turnover, free training programs, travel at the expense of the company, a personal car and even participation in a housing program are offered.

Official website of the company - siberianhealth.com.

It has been operating since 2006, but only in the last period has there been active growth of the network. I started using the MLM marketing scheme in 2013. The main products are represented by health products made from seaweed. When comparing network marketing companies in this product category, Werther Organic has two advantages - a more affordable cost and the use of domestic products in production. The marketing scheme for partners includes a discount for distributors, seven levels of leadership remuneration, bonuses from team turnover, affiliate programs for education, housing reform, and the transfer of achieved results by inheritance.

Internet representation of the network - vertera.org.

A perfume manufacturer from Russia, producing products strictly in accordance with GOST. Litani has been operating under the network marketing scheme since 2016, offering potential partners three opportunities to become a participant in the system (client, trainee, partner) and two options for generating income (up to 28% for the distributor’s turnover and incentives in the form of a car and tourist trips). Despite the large number of competing companies, in recent years Litani has been systematically expanding and conquering the market, which makes it a promising area for making money.

Official website of the company -.

A network selling a wide range of high-quality household goods (ecological detergents and cleaning products, textiles, household appliances, car care products), operating since 1998. Despite the fact that the company is Russian, the products offered to consumers are supplied from European countries and the USA. Currently, there are more than 500,000 distributors registered in it, distributing goods in neighboring countries. A cumulative marketing plan is offered for partners, according to which you can receive discounts and earn money on retail sales, obtain a product loan, and also secure interest payments from the turnover of the attracted team.

A young Russian MLM network, operating since 2014 and characterized by stable growth. The main product is Omegaferol oil, consisting of plant components. Dietary supplements and other products for a healthy diet are also presented. The cooperation scheme offers two formats: linear when collaborating as a client (discounts on products) and binary when forming a partnership (building a balanced network).

To summarize, it is worth noting that the list of network marketing companies in Russia is regularly updated with new projects, which can also be an excellent start for you in the MLM business. On the other hand, before formalizing a partnership, it is important to analyze not only the terms of cooperation, but also the relevance of the product itself with which you will be working.

To organize an online business online, you need to work on the Internet from home. What business is best to open online for optimal earnings online with minimal investment? Naturally, the best entry into online business is, oddly enough, network companies and network marketing. Network marketing companies in Russia appear regularly and disappear rapidly. To avoid falling for scammers on the Internet, and, in particular, scammers in network marketing, it is necessary to choose a network company with experience and a reasonable business plan. Of course, it’s easier to send all the “obsessive” ones and work for someone stupidly performing mechanical actions. But you can turn on your mind, choose the best network company with an affordable franchise, and provide yourself, your children, and your parents with a decent life just working from home on the Internet.
What do you need to know to work remotely on the network at home if you intend to work on the Internet and looking for a ready-made business with minimal investment?

“There are many network companies, but you have one life” - the words of a great woman, Tamila Polezhaeva.

When choosing the network marketing industry, it is very important to choose a network company with the most convenient marketing plan for you. It is important that the company's capabilities meet your needs. Now I will briefly describe the pros and cons of the most famous network companies - competitors and starting a business with them. Where you can open a business in Russia - the most affordable franchise and remote work online from home.
So, there are many companies on the market (cosmetics, tourism, legal). I want to say right away that the founder of network marketing was the Mary Kay company, which began its existence back in the 19th century! But, this company is engaged in offline promotion (meetings, master classes), entering the company is quite difficult - you need to purchase a starter set of expensive cosmetics for a good amount.
Avon, Faberlic, Oriflame, NL and Amway are actively promoting on the Internet. Let's take a look at these network marketing companies in Russia.

What business to open

Avon

To register with this company as a coordinator (that is, to get the opportunity to invite people and build your business, you need to send paper copies of documents to the company, which delays the registration process for a long time. The pluses are a small purchase amount - only 1,600 rubles, cosmetics are inexpensive. The company promises a good bonus - 125,000 rubles. But it is paid only if the coordinator recruits 5 active consultants to the first line of each directory, and this continues throughout the year. At the same time, there is a certain plan for group turnover, if this is not met, the coordinator is disqualified. bonus. The company promises a discount on the price of the catalog. If a consultant buys cosmetics only for himself, his discount is 15%, if he fulfills the plan (each catalog has 5 active members for 1600 rubles) - the discount reaches 32%. for recruits, then he finishes the order for inactive consultants. I want to get bonuses and very big discounts... The company thereby does not encourage the construction of structures in depth. When recruiting, the coordinator is happy to inform you that in order to receive income, you do not have to create an individual entrepreneur; the money drips onto the consultant’s card. At the same time, it is forgotten to clarify that for such a procedure the company retains 20% of the consultant’s profit in the first stages, and then the retention increases to 40%. The company does not have large-scale events and conferences that would make the internet buzz about them. There is also no way to generate passive income. The plan for recruiting to the first line is endless. If the plan is not followed, Avon may terminate the contract with the consultant, transferring its structure to another coordinator. International sponsorship is not available.

Faberlic

This company has been on the market for only 20 years. This is a Russian company, which the consultants are very proud of. The marketing plan and the picture of the career ladder are painfully reminiscent of the marketing plan of the Oriflame company. But the devil is in the details. The company pays bonuses when a consultant achieves certain Director ranks. Bonuses in rubles - for achieving the title of Director, 55 thousand rubles are paid. Mandatory turnover – 50 points. In this case, 1 point costs 80 rubles. Total, mandatory purchase for payroll is 4000 rubles. The director's turnover is more than 400,000 rubles. The company EXISTS a plan for recruiting priority in the first line. At any Director level there must be a gap. If a consultant has 2 grown directors in the first line, then in order to receive income from these structures, it is necessary to have an additional growing group with a turnover of 1000 points (80,000 rubles). At any level there is a break. If the SUPER-Director does not have a personal group, then in this directory he will not receive a salary. That is the company did not provide the opportunity for passive income for its consultants. Also, if the recruitment plan is not fulfilled, the company reserved the right to unilaterally terminate the contract with the consultant. Travel abroad is not included. Entrance to the company is free and without a passport.

NL

Russian company - IP registered in Russia. Company product - Energy Diet– quite expensive cans of food. I am not happy with the recruiting method in this company - newcomers are taught to recruit existing consultants of other network companies, in particular Oriflame. I was also alarmed by the turnover required to calculate income - 21,000 rubles per period. The very narrow focus of products and the high price per unit of goods make business development quite problematic.

Amway

This network company deals mainly with household chemicals and washing powders. The downside is that there is an entrance fee that you have to pay for the right to work in the company. The product is quite expensive and does not last long. Eat mandatory trade turnover - 200 points, at the moment this amount is more than 10,000 rubles. Since the goods take a long time to be consumed, to ensure a minimum personal turnover, you need to constantly find new buyers. Product presentation also takes place offline (i.e. You need to wash clothes and remove stains at the client’s home;). The Amway business is not widespread on the Internet; you can mostly see selling pages. The products are high quality, but I wouldn’t choose Amway for business

Oriflame

This network company is 50 years on the market, 20 years on the Russian market. Survived 3 crises and always increased its momentum. Assortment – ​​1800 items for every taste and budget. In addition to decorative cosmetics and skin care products, there is an excellent Wellness series – products for health.
To calculate salaries (volume discounts), the consultant must learn how to make a turnover equal to 150 points (about 6,000 rubles). The consultant's initial discount is 20% of the catalog price. When a consultant makes 150 points to his number, the system automatically calculates and shows the income from his structure, and in the next catalog 12% of the consultant’s personal order is returned to the account. Thus, a partner who came to build a business makes 150 points and his total discount is 32%. The company has own production – 5 factories and 1 leather research institute, constantly publishes scientific publications, has its own patented formulas. The company has milestones - titles, upon reaching which the company pays dollar bonuses. For the title Director - you will receive $1000, for the title Golden Director - $2000. At the moment, bonuses of up to $1 million are provided. Director's turnover is 250,000 rubles. The company does not have a first-line recruitment plan. The consultant may not recruit at all, but buy personally for himself and have a maximum discount. In the company's projects, building structures in depth is encouraged, which gives all team members a chance to grow quickly. When a consultant achieves the title of “Golden Director” (that is, 2 director teams have grown under you) - income becomes passive, and you can not recruit at all, but do personal turnover and receive your 5% of the team’s turnover. Basically, everyone moves on and continues to build up structures, because “appetite comes with eating,” plus the company arranges motivating trips abroad (conferences) from certain levels. Once a year, the company holds a conference for managers and directors - even newcomers can attend if they meet the conditions for their growth. The second conference is for Gold Directors and above, the third is for Diamond Directors and above, and the fourth is for the Top Leadership Team of the company. The Director's Banquet is held annually in Moscow- the largest corporate event in the country, which brings together all the directors and their companions. Network marketing stars and show business stars perform at the Banquet. From the “Director” level, an Autobonus is available - a monthly payment from 3,000 to 9,000 rubles. to buy a car. Income is accrued to the consultant to his personal number and is paid in full when the consultant opens an individual entrepreneur (calculations according to the simplified taxation system). Upon reaching the “Director” level, Registration costs 149 rubles (if the consultant collects an order for 100 points within 21 days from the date of registration, this money is returned to his account and can be used as a discount on the next purchase. To register, you need a series and passport number. You can work in 62 countries around the world. International sponsorship is provided, that is, you can have a team in Russia, Ukraine, Poland, etc. Oriflame is the only best network company in Russia where you can pass on your ready-made business by inheritance - this is an ideal network job when choosing which business to open to work from home. The best choice to open a business online. They really have something to be proud of. And now is a good time to

Having studied the company’s website, I only see a hotline number, a list of service centers and an email. In fact, there is not enough information to make a serious decision in favor of long-term cooperation.

Where is the information about turnover, production, form of activity, assortment? Well, okay, the company was founded in 2007 in Barnaul.

To receive a marketing plan, I had to register on the company’s website. It turns out that the company is developing in 32 countries. You can see a photo of the CEO. On the website for checking counterparties, it turned out that the general director registered 4 companies, which are LLCs with an authorized capital of 20,000 rubles and total revenue for 2016 of 383 million rubles. Oriflame, in Russia alone, for the same year, had revenue of 15 billion 940 million rubles.

There is not a single fact that the tianDe company has at least one plant, research center or factory, institute. All production is in China with ISO certification. That is, the products are clearly at a premium - everyone needs a profit.

It says at the top - the first 20 bb are not eligible for the 35% discount. We enter an order for 20 bb (1277 rubles) - no discount is issued, we enter an order for 130 bb (5900 rubles) - the amount for free delivery - the discount is 29.6%. If the order is reduced to 50bb, then the discount will decrease to 21.3%. Where is the 35% on products?

Delivery is only from pick-up points, which are only in 15 cities. Not enough, compared with the thousands of open source software that Ori has, even in the most remote corners of our country... If your city is not on the list of Tiande pickup points, you will have to pick up the goods at the post office, paying an additional 500 rubles, and you will have to wait from 4 to 15 days for delivery of the goods .

Now about the marketing plan.

Firstly, the cost of a point for a consultant and the cost of a point to be paid are different. And the difference is quite big – about 50%. They pay, as in NL, only on half of the sales volume.

High margins on a product kill the idea of ​​network marketing, which should ensure the availability of a quality product.

Secondly, the company’s “unique non-separating marketing plan” is unique due to the total sum of all volumes. Their entire MP is Ori’s marketing plan up to the level of Director in Ori, for example. And then, imagine that at the Senior Director level the discount would be 23%, at the Gold Director level - 24%, and so on up to the Diamond President.

But if you have no inter-percentage difference with your leader, you will not be paid anything from your group, only a bonus from 5 generations. And if this branch accounts for 75% of the volume of your structure, then you will not receive this bonus either. It is NOT PROFITABLE to develop leaders in this company.

The marketing plan is finite, that is, if you have collected all the qualifications, you will have to come up with new ones until you get to 100%, but this is no longer possible, that’s all uniqueness.

Thirdly, the company has only five levels of bonuses, everything else is cut off, and you constantly have to work on breaking away from your branches. There is no passive income in this company.

Fourthly, the Auto Program ends in 2018, the only brand you can count on is Volkswagen. The car is leased under specific conditions (increase 10,000 – 40,000 points per year). The company's auto program is given under rather harsh conditions, a large number of points, I think. But for me, the most important thing in the network is the opportunity to build passive income. The rest will come later...

They didn’t go into the wilds about travel either - the company has just begun to develop this area. One thing is good - of all the companies listed here, representatives of Tiande have never tried to entice our girls and boys to join them - this speaks of clean working methods.

I hope that they will rework their unique Marketing plan, because a network business is a business of mutual assistance, where it is profitable to grow and train leaders.

Network companies of Russia

Despite the colossal income gained from the network business, in Russia only 7 percent of the population is included in it, who are mainly engaged in open sales, that is, they form the turnover of network companies. Nevertheless, significant dynamics are visible. Every year, new network companies appear in Russia, which are growing much faster than companies performing traditional sales. Undoubtedly, in terms of mass production, the leaders in this business are mainly countries such as India, China, Brazil, and Japan. In Russia there is still a lot of free space on the Internet.
A very delicate point in the network business is the absence of any legislative framework in our country, while in America and Japan, for example, there is a whole section in the laws on network marketing. Such conditions only lead to fertile ground for fraudulent actions, which, unfortunately, still occur today. It’s good that we have at least a special association that somehow checks network companies in Russia, raising the intended trust in these companies and network marketing in general. In the database provided by the association there are only 16 organizations that may deserve some trust. When freshly minted companies emerge in the fashion network business, you cannot be one hundred percent sure that they will be able to survive among a significant number of competitors. In any case, one of them will go bankrupt, and there is nothing terrible or shameful in this, because this is a business - nothing personal...

Remote work on the network at home

Those people who decide to work in a company must understand that they may have to invest personal funds, undoubtedly have a lot of contact with people, research products and, of course, prepare psychologically to the fact that clients will be all very diverse, and it is strictly forbidden to perceive any disagreement at your own subjective expense. Many people have achieved significant heights in this difficult network business - as an example, you can look at similar Russian network companies such as Avon, Oriflame, Mary Kay, Amway and Faberlic. Among their top leaders are diamond directors with cars and apartments, and a huge team of successful distributors around the world.
Often, Russian network companies provide their employees with unlimited freedom of action, the potential to carve out days off and earn as much as they want. Such a positive fact has its own certain nuances, since, on the one hand, it looks like everything is wonderful, and you definitely your own boss, and on the other hand, at the initial stage there is no stability, today you can make good money, but tomorrow nothing, but this is only a matter of time. Undoubtedly, if there is a goal and desire, and the essential thing is knowledge of your product or service, then everything will definitely work out. Successful network companies in Russia have certain established and established tactics for professional online business organization that can build a stable business to ensure return on equity. Newcomers need to tune in to a leisurely, but promising outcome, since you won’t earn significant money right away, especially in large companies where there is competition that has captured about 70-80% of the entire sales market. Only by gaining experience and understanding all the subtleties and nuances of a network business is it possible to achieve a decent and stable income.

If you are interested in improving your standard of living, join the team!

Question for those who are already registered in any network company:

If everything is fine with you, why are you searching for “Network marketing companies in Russia”? If you came to this page, it turns out that you are unhappy with your company and are looking for something else?
Or you came to leave your coordinates here in order to lure people from other companies to you. This behavior is definitely incorrect and discredits your entire company. Such comments are deleted.

I express my deep gratitude to E. Penkin’s blog for shaping and completing part of the article. I completely agree with Evgeniy - there should be no competition or poaching within network marketing. There should be competition between traditional and online businesses. Leave all the “tomatoes” in your pockets and go work for your companies using clean methods.

o.z. Director of the company.
Hobbies: photography, design, web design, vector psychology and esotericism.
Marital status: beloved wife and mother)
Life Motto: It's never too late to leave the crowd. Follow your dream and move towards your goal!

Updated: February 17, 2018 by:

I provided statistics on search queries on the Internet using the Yandex Wordstat service. Much water has flown under the bridge since that time. How are things, I wonder, four years later, in April 2016?

This time I slightly changed the rating conditions. Last time I analyzed the popularity of companies based on people’s interest in them from the point of view of cooperation. Therefore, I studied mainly search queries using the key phrase “” when it came to Faberlic statistics.

This year, I decided to analyze search statistics for higher-frequency queries and used only the company name in the query.

For those who do not quite understand what the Yandex Wordstat service shows, I’ll explain a little.

For example, you are interested in how many people enter queries into Yandex with the word Faberlic. Type the required keyword in the statistics line and get the number of impressions with this word. In the picture we see that over the last 30 days there have been 947,453 requests in Yandex containing “Faberlic”. The Yandex statistics service takes into account all requests with the word Faberlic: “how to become a Faberlic consultant”, and “Faberlic catalog”, and “”, and many others.

Thus, it turns out that the higher the numbers in the statistics for a keyword or phrase, the more people are interested in this phrase on the Internet. Accordingly, we can conclude that the more people on the Internet are interested in the Network Company, the more popular it is among the population. Of course, for a more qualitative analysis, it would be good to have data on turnover, dynamics, product range, know the average bill, the number of consultants and consumers. But unfortunately, network marketing companies in Russia do not publicly post such data. Therefore, we will operate only with those numbers that are available to us. In addition, these figures quite realistically reflect brand recognition and popular love.

As a result of statistical research, the following results emerged:

The table shows only companies that received more than 100 thousand search queries per month in Yandex. Pay attention to the significant gap between the top three.

Now let’s compare how the statistics for the key phrase “registration with a company” have changed.

In this table, I was primarily interested not in the ratio of numbers between companies, but in the dynamics. She's impressive. If in 2012 only 824 people were interested in registering with Faberlic, then in 2016 there were already 3,643 people. An increase of 324%. And this applies to almost all leading companies in the rating. Thus, we can conclude: more and more people use the Internet to shop and obtain the necessary information.

The number of distribution companies specializing in MLM is increasing every year. This is due to the fact that this business is profitable and quickly generates income. It’s easy to do without even leaving your home. If you study in detail the basics and concept of MLM marketing, you can achieve excellent results in just 2-3 months.

What is network marketing

MLM business is a multifaceted concept that opens up many prospects. It implies the concept of selling services and goods, based on the formation of a network of independent sales agents who not only sell products, but also have the right to attract new partners who will be endowed with similar rights. The income of each networker is formed from commissions from product sales and additional remuneration (bonuses), which directly depends on the volume of personal sales of attracted sales managers.

History of Network Marketing

Karl Rehnborg is considered the founder of the MLM business. He developed ideas that later turned into an entire industry with huge multi-million dollar turnover. In 1927, in the USA, Rehnborg began working hard on creating nutritional supplements. He distributed the developed drugs for testing purposes free of charge to his friends, who subsequently refused to take them.

After Karl realized that free things were not valued, he began selling dietary supplements: the results were not long in coming. Information about the drugs spread quickly, and the number of people interested in them increased. Karl Rehnborg could not independently satisfy the requests of all clients, so he had to come up with a new scheme. He invited his friends to provide information about dietary supplements, and, subject to successful sales, promised to pay commissions. The history of network marketing began with these events.

In 1934, the first major company, California Vitamins, was founded by Carl Rehnborg. It operated a sales system in which the consumer of a product became its distributor. In 1939, the marketing company was renamed Nature's Sunshine Products, but the principle of drug distribution remained the same. Network agents independently attracted new clients to cooperation, advised them, drew up sales plans, came up with individual sales schemes, and offered to create their own network.

The MLM company fully provided networkers with goods and paid commissions on time. This is how a new definition appeared in MLM - single-level marketing. The business story did not end there: a new round was set by the American Way Corporation (abbreviation Amway), created in 1959 by former Nature’s employees Jay Van Andel and Rich de Vos.

What is the merit of these people in the development of MLM business? They began to sell not just one product, but several. The list of products offered to consumers has been expanded with food additives, household chemicals and household goods. Soon, network marketing companies appeared on the world market. They began to operate successfully in Russia, China, and England. Their importance has become enormous both for people and for the economies of many countries.

Types of Network Marketing

The MLM business is developing rapidly, and its varieties are becoming more diverse every year. The main types of network marketing are as follows:

• Puff marketing (the most popular, adapted to the Russian market, its striking example is companies selling cosmetics - Avon Products, Faberlic, Mary Kay, Oriflame. The essence of this type of marketing is that the company’s concept is based on the work of certain layers of employees at several levels.
• Pyramid. This type of marketing involves the following scheme of work: there are founders who find several people selling services and goods, they subsequently find several more people and control their activities, and so on ad infinitum.

How does network marketing work?

The operating principle of Russian MLM companies is the same:

1. First, a person undergoes an interview, during which he is introduced to further prospects and emerging opportunities.
2. Then the person is told that he must, using the network, attract new people, the greater their number, the greater his monthly income.
3. How does network marketing work? New employees, becoming distributors of the company, independently promote it, for which they receive commissions, contributing to their own development and the development of the business.

The essence of network marketing

What is MLM (multilevel marketing), what is its essence? This is one of the most popular and effective ways to legally promote services and goods. MLM companies offer unique products that are becoming in demand both in individual cities, regions, countries, and throughout the world. MLM business is not only about direct sales. To succeed in this field, you don't have to sell anything.

The main components of multilevel marketing are well-organized intellectual distribution and the effective use of all its capabilities and advantages. In other words, the main essence of network marketing is that consumers, being at the same time partners of a company, develop its network and make a profit from turnover.

Network Marketing Principles

MLM business is based on the following rules:

• equality for all;
• helping others;
• minimum entry costs;
• availability of residual income;
• pyramid structure (this principle of network marketing ensures the constant development of the business and its stability).

Network Marketing Structure

Running through the MLM business and not noticing the main thing, many never achieve the desired results. Why? Because they don’t know how to properly build a network marketing structure. What is structure? These are people who take part in organizing trade turnover, and the final income directly depends on their number. It may include acquaintances, friends, complete strangers. The main task is to skillfully unite them and constantly motivate them for successful advancement.

Network companies

There are many companies that specialize in MLM business. They sell cosmetics, chemicals, household appliances, household goods, and other products. A detailed list of network companies operating successfully in Russia is given on the Mlmbaza website, the most popular:

• Life;
• Oriflame,
• "Siberian Health";
• Faberlic;
• Avon;
• primerica;
• Shaklee;
• Talk Fusion;
• Nevers;
• Vitamax;
• Zepter International;
• Kirby;
• Atistek;
• Lurk;
• Pravda.

Working in network marketing

Anyone can try their hand at multi-level marketing business. Companies provide training in network marketing, but not everyone can master this profession. A distributor of an MLM company must be able to organize the sale of products and draw up schemes for the effective distribution of services and goods. The profession obliges you to attract new partners, expand your client base (network), apply intellectual resources, use the network, and set up a system that will generate income directly for the company and the networker.

Network business on the Internet

The World Wide Web opens up incredible opportunities for networkers. Using her gifts, you can make a fortune without leaving your home. On the Internet, products are promoted through their own websites, information groups, blogs, and communities. The main task of the distributor is to find the target audience, create an effective information distribution network, and constantly improve and develop it. Network business on the Internet has the following advantages:

• the ability to conduct business from anywhere in the world;
• the ability to attract potential partners from any region, city and country;
• a variety of information programs that provide prompt assistance in solving organizational issues, conducting education and training;
• the ability to sell through online stores with an integrated order basket;
• possibility of learning online.

How to make money in network marketing

To achieve success in this business, you must follow a few simple rules:

• be a sociable person who is not afraid to approach strangers with an offer;
• be able to interest, present products in a bright and unusual way;
• actively involve your relatives, acquaintances, and colleagues in the matter;
• constantly improve yourself, increase your intellectual level;
• skillfully build a pyramid by attracting new people in order to not only earn commissions from sales in network marketing, but also provide residual income.

Cons of Network Marketing

Before starting a career as a distributor, you need to familiarize yourself with the main disadvantages of the MLM business. This is the only way to understand how correctly the direction of activity has been chosen. List of disadvantages of network marketing:

• unstable income;
• great moral stress, constant pressure from clients;
• the need for material investments;
• high level of responsibility for the people involved.

Benefits of Network Marketing

MLM marketing has both its pros and cons. He teaches how to receive unlimited income, which depends on the aspirations and character of a person. Another advantage of network marketing is financial independence. Network agents have a free work schedule, plan their day independently, make decisions, gain new skills, the opportunity to develop socially, and improve their status. These advantages cover all the disadvantages of this type of activity.

Video: how online business works

Traditionally, on the first Sunday of December in Russia, Networker Day is celebrated - a holiday for everyone involved in network marketing and direct sales. On this occasion, we decided to recall the most famous MLM companies and understand whether multi-level marketing is a serious competitor to retail.

Not a weak link

Multilevel marketing (MLM) is one of the direct sales methods. With it, the sale of goods is carried out through a network of independent agents, each of whom can not only sell the company’s products, but also attract partners for this. In this case, his income will consist of his own income and a percentage of the income of the people he hires. Another name for the system is Network Marketing, which translates as “network marketing”.

Profits from direct sales for distributors are quite low. They give most of the proceeds to the company and the distributors above them. The main profit comes from sales of sponsored distributors.

MLM companies are often confused with “financial pyramids” such as MMM or Khoper Invest. Indeed, “pyramids” took the principle of network marketing as a basis.
Participants who stand at their origins receive money from the contributions of “newcomers”. But, unlike network companies, “pyramids” do not offer specific goods, but essentially trade in air. The life cycle of “financial pyramids”, as a rule, is no more than several years - they exist only as long as new investors appear. While large MLM companies have been successfully operating for decades, they bring small but stable incomes to the lower levels, and billions to those who are at the origins.

Explorer Carl Rehnborg

The history of the creation of MLM companies is associated with the name of entrepreneur Karl Rehnborg. In 1927, he opened a small company selling food additives of his own production. At first, Rehnborg sold the products to acquaintances, and they, in turn, shared rave reviews with their friends.

And there were those willing. In 1934, Carl Rehnborg founded California Vitamins, which was later renamed Nutrilite Products. Very quickly the company achieved a turnover of several million dollars without spending a single cent on advertising - only through direct sales.

To this day, the most popular products sold through MLM marketing remain nutritional supplements and cosmetics.

AMWAY

Amway (American Way of Life) was founded in 1959 by Nutrilite Products employees Richard DeVos and Jay Van Endel. They decided to slightly change the operating principles that Nutrilite used. Firstly, Amway began to sell different groups of products. In addition to dietary supplements, the assortment now includes many household chemicals and cosmetics. The company now offers over 3,000 items. Secondly, DeVos and Van Endel introduced a multi-level marketing plan for employees and began to pay remuneration not only from personally recruited distributors, but also for sales volumes of agents at all levels. This led to Amway's rapid growth.

Now the company's turnover is over $8 billion, and it ranks 25th among the largest private companies in the United States according to Forbes. True, the history of Amway is not cloudless. More than once she became a participant in scandals. Thus, one of the company’s former top distributors, Eric Scheibeler, who was personally acquainted with the founders of Amway, in his book “Merchants of Deception” accused the corporation of fraud and called it a totalitarian sect. This is not the first time Amway members have been accused of sectarianism. The company's training methods have been criticized more than once.

AVON PRODUCTS

The “long-liver” among MLM companies dates back to 1886 with a small company called California Perfume. It was created by American David McConnell. Initially, the company's assortment included only 5 types of simple perfumes with floral aromas. Now AVON offers hundreds of items of cosmetics, perfumes, jewelry and accessories. The company's turnover is about $10 billion a year, and the number of distributors around the world is in the millions.

Why McConnell is not considered a pioneer in the creation of MLM enterprises - history is silent. Perhaps the fact is that although the company used the principle of direct sales from the beginning of its existence, it did not immediately come to a multi-level scheme. But AVON has gone down in history by being the first of the cosmetic giants to abandon testing of products on animals.

MARY KAY

Another American corporation. Created in 1963 by Mary Kay Ash and named after the founder. Offers hygiene products, cosmetics and perfumes in the mid-price segment. In 6th place in the world among companies engaged in direct sales according to 2012 data.

The trick of Mary Kay is that its consultants do not just sell products, but act as “beauty consultants.” That is, they undergo basic training in skin care. The second feature is that territories are not assigned to a specific consultant: they can hire their agents anywhere in the world.

Like Avon, Mary Kay stopped testing its products on animals in the early 90s, but resumed testing in 2010. For which she was severely criticized by the “greens”.

ORIFLAME

The Swedish cosmetics company Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnick. In the early years, only one line of products was sold, but now the range includes about 1,000 items of cosmetics and perfumes. The annual turnover is about 2 billion dollars, the number of consultants in the world is over 3 million people.

Oriflame positions itself as an environmentally friendly company and even prints its catalogs on paper made from artificially planted forests. Therefore, Greenpeace does not attack the company much. But she came to the attention of the tax authorities. In August of this year, the Russian representative office of Oriflame failed to pay taxes for several million rubles.

FABERLIC

The first Russian MLM company was created in 1997 by entrepreneurs Alexander Davankov and Alexey Nechaev. The original name was “Russian Line”, the Faberlic brand was registered in 2001. The company currently operates in 20 countries, including Poland, Germany, Romania and Hungary.

The company considers its know-how to be “oxygen cosmetics” - face and body care products based on perfluorocarbons. Faberlic's turnover is now over 250 million dollars a year.

KIRBY

The company producing and selling vacuum cleaners is celebrating its 100th anniversary this year. It was founded in 1914 and is named after the developer of the first vacuum cleaner models, Jim Kirby. The company’s “trick” is that at a certain period it sells only one model of vacuum cleaners. Once a model becomes obsolete, it is discontinued and a new one is sold.

Kirby is the most scandalous representative of the MLM diaspora. Every year, US consumer protection agencies receive dozens of complaints about improper actions of the company's distributors. Allegedly, they use harsh psychological pressure to force the client to give money for expensive equipment (for reference, the price of a Kirby vacuum cleaner starts from 100 thousand rubles). Russian forums are also full of messages: “Kirby vacuum cleaners are a deception, a scam, a scam!” However, the company continues to operate in Russia and in 70 other countries.

HERBALIFE

Founded in 1980 in the USA, it offers products for weight loss, healthy eating and skin care. The international division of Herbalife is now led by former Disney CEO Michael O. Johnson, and scientific developments in the field of skin care are led by Paolo Giacomoni, who previously worked at Estee Lauder and L’Oreal.

Herbalife is the first American MLM company to open a representative office in Russia. This happened in the early 90s and coincided with the emergence of a huge number of financial pyramids in Russia. Therefore, many people still mistakenly classify HERBALIFE as one of them.

The debate about whether MLM business is good or bad continues to this day. Some praise multi-level structures, seeing in them opportunities for quick money, others condemn the very principle of building pyramids. Business analysts also disagree. Some predict that direct sales will soon supplant traditional retail, while others believe that retail and e-commerce will eventually kill MLM. However, network marketing has been around for decades and is not going down yet.

Alena Yarkova almost got caught online
Illustrations by Dmitry Shevchuk